Living in Willis, TX, offers a wealth of water sports and boating activities. If you’re considering buying a boat, you will likely have questions about boat insurance. At the Melvin Gessner Insurance Agency, we are frequently asked these questions. In this blog, we’re going to clear up one of the most common queries.
Does the state of Texas mandate boat insurance requirements?
Texas Law
Boat insurance requirements in Texas are straightforward. The state does not legally require boat owners to have insurance.
While that sums up the legal side of things, it’s important to note that even in the absence of state-level requirements, certain circumstances might necessitate boat insurance.
Lenders
Financing your boat is often one of these circumstances. If you secure a loan to purchase a boat, the lender will probably compel you to avail of an insurance policy to safeguard their investment.
Upon complete loan repayment, you gain more leeway in your insurance decisions, but until then, the lender has the right to impose a boat insurance policy and stipulate minimum insurance prerequisites.
Liability and Protection
Although Texas doesn’t mandate boat insurance, it also doesn’t protect you from liability. If an individual is injured on or by your boat, you may be held responsible, and ensuing charges could escalate rapidly. Liability protection helps cover these expenses (up to the policy’s limit) and shields you against potential lawsuits.
The state of Texas offers some additional recommendations for boat insurance. Without imposing any legal obligations, the state endorses different boat protection policies. These include replacement cost, actual cash value, and agreed-upon value policies, all offering varying levels of remuneration if your boat incurs damage.
As a resident of Willis, TX, you have multiple boat insurance options. Consult with your Melvin Gessner Insurance Agency representative to determine the insurance choice that best suits you.
